Claim a tax refund for work expenses

HMRC has issued a press release to remind employees that may be able to claim tax relief for some of the bills they pay that are related to their employment. The most recent figures show that more than 800,000 taxpayers claimed tax refunds for work expenses during the 2021-22 tax year with an average claim of £125. A claim can be made online through HMRC’s online portal on GOV.UK.

A claim for valid purchases can be made against receipts or as a 'flat rate deduction'. The flat rate deductions are set amounts that HMRC has agreed are typically spent each year by employees in different occupations. These deductions range from £60 to £1,022. If an occupation isn’t listed, employees can still claim a standard annual amount of £60 in tax relief if they pay their own expenses.

This means that qualifying basic rate taxpayers can claim back £12 (20% x £60) and higher rate taxpayers £24 (40% x £60) per year. Claims can usually be backdated for up to 4 years. 

Employees may also be able to claim tax relief for other expenses such as using their own vehicles, professional fees, union memberships, subscriptions and for buying work-related equipment. As a general rule, there is no tax relief for ordinary commuting to and from an employee’s regular place of work.

HMRC’s Director General for Customer Strategy and Tax Design, said:

'Every penny counts and we want to make sure employed workers are getting what they deserve – their hard-earned cash straight back into their pockets. To make a claim just search ‘employee tax relief’ on GOV.UK. It is the quickest way of getting a tax refund on your work-related expenses and ensures you get 100% of the money back.'

There is no tax relief available if an employee is fully reimbursed by their employer.